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Business / Auto China

VW: Huge funding in the future in China

By Gong Zhengzheng and Hao Yan (China Daily) Updated: 2015-02-16 09:22

VW: Huge funding in the future in China

Volkswagen’s energy-saving cars. The automaker’s sales in the country rose by 12.4 percent to 3.68 million units in 2014. [PHOTOS PROVIDED TO CHINA DAILY]

Many of the staff members at the Changsha plant were hired more than a year ago.

Shanghai Volkswagen trained and qualified workers including the management team in existing plants in Shanghai.

It is a part of the group's expert education and practical training in plants apart from theoretical education in schools.

"Before reaching success in the market, we have to be the top employer. We need the best people," said the CEO.

Volkswagen China has used a 50 million yuan ($8.2 million) charity to support Chinese youth, including helping football training at middle schools and promoting the use of child safety seats.

Preparations including construction for yet another plant, in Qing dao of Shandong province, is ongoing for FAW-Volkswagen. It is scheduled to open in 2017.

The giant German manufacturer's joint venture with FAW Group makes Volkswagen and Audi cars. Its other tie-up, with SAIC Motor Corp, produces Volkswagen and Skoda models.

Along with expansion is a top priority for its ongoing commitment to lower emissions, the CEO said.

"All environmental issues are so important (in China). What we are doing on the product side is all about that. We call it the efficiency strategy."

The company's efficiency strategy is designed to not only promote electric mobility but also reduce fuel consumption in combustion-engine cars through high performance in engines and gearboxes, he added.

The CEO also said he expects the carmaker to sell "six-digit numbers" of plug-in hybrid and purely electric vehicles a year in China by 2020.

To promote clean mobility and alleviate pollution in urban areas, Chinese authorities now exempt plug-in hybrid and purely electric vehicles as well as fuel-cell battery cars from the nation's 10 percent auto sales tax.

Many other foreign and indigenous automobile companies such as Daimler, BMW, BYD and Chery are also keen to introduce electric models at competitive Chinese market, analysts say.

Contact the writers at gongzhengzheng@chinadaily.com.cn and haoyan@chinadaily.com.cn

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